Speculation loomed over Maryland Gov. Larry Hogan’s political future Tuesday as he pitched what might be his last and best hope for big, lasting tax cuts in office.
“We need to take bolder steps,” Hogan (R) said as he proposed sending much of a historic state surplus into the pockets of retirees, the working poor, corporations, retail developers and manufacturers.
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The governor’s effort to deliver on long-promised tax cuts accompanies fresh reports of overtures from party leaders eager to parlay his popularity as a Republican in a deep blue state into a run for Senate this fall. He continues to entertain running for president in 2024.
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Hogan, 65, downplayed the recruitment efforts of Senate Minority Leader Mitch McConnell (R-Ky.) and others, saying Tuesday: “As I’ve said a million times, I don’t have a burning desire to serve in the U.S. Senate and I do have a burning desire to continue to focus on this job completely, every day.”
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When it comes to running for president, the governor was less direct: “There’s plenty of time to worry about that. We just started 2022. We certainly don’t have to start talking about 2024.”
Enacting his tax-cut plan — a critical piece of his legacy — depends on the Democratic supermajority in the General Assembly, whose leaders have cast a skeptical eye on the lasting price tag of Hogan’s ideas.
“We need to be very cautious about deep tax cuts or extraordinary spending,” state House Appropriations Chair Maggie McIntosh (D-Baltimore City) said.
The governor’s unexpected ascent eight years ago and subsequent reelection were fueled largely by his hewing to pocketbook issues and avoiding debate on divisive social matters. His pointed criticism of President Donald Trump, willingness to work the national TV circuit as he handled the pandemic and association with moderate groups such as No Labels further sculpted his reputation as a pragmatist.
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And while he has lowered tolls and fees in his purview — and argues he cut other taxes alongside the legislature — a sweeping tax-cut plan of his own design has been elusive.
Leading Republicans have in recent months aggressively courted him to take on U.S. Sen. Chris Van Hollen (D-Md.) this fall and help the GOP tip the balance of power in Washington.
An array of high-powered Republicans have personally appealed to Hogan, noting polling that shows it could be a competitive race, according to a person familiar with the conversations. Hogan has not directly told them no, according to the person, who spoke on the condition of anonymity to discuss private conversations.
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The Associated Press first reported the coordinated recruiting campaign.
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Nevertheless, McConnell and the lieutenant who runs his super PAC, Steven Law, each have had multiple conversations with the governor about running. Elaine Chao, Trump’s former labor secretary and McConnell’s wife, discussed the matter with Hogan and first lady Yumi Hogan over lunch at the governor’s mansion. Hogan has also been encouraged by U.S. Sen. Rick Scott (R), who previously served as Florida’s governor and currently leads the Senate’s election campaign arm.
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The deadline to file for Senate is Feb. 22, but Hogan said Tuesday he wants to “run through the tape” at the end of his term as governor.
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“We’re in the middle of a couple of crises, which we’re trying to handle the best we can,” he said. “We’ve got a little more than year left. We’re going to land the plane.”
The governor released limited details on his five tax proposals but said the biggest piece would eliminate “state retirement taxes” on retirees amounting to $4 billion over the next five years.
A second proposal would make permanent a temporary expansion of the state’s earned income tax credit, a cash payment to the working poor that’s the most generous in the nation. A third would eliminate electronic filing fees for corporations, limited liability corporations and family farms, saving those entities between $100 and $300 per year.
A fourth piece would funnel more money into a program called the More Jobs for Marylanders Act, which would give incentives to manufacturers that open or expand inside designated zones. And the final piece would make permanent a pandemic-era relief program that gives money to companies revitalizing vacant retail or commercial space.